Bitcoin Updates: Bitcoin's Sharp Drop and Federal Reserve's Quiet Easing Fuel Optimism for a Bull Market
- VIX fear index surged to 19.61 as Bitcoin fell below $108,000 amid corporate earnings uncertainty and Fed policy ambiguity. - BitMEX's Arthur Hayes warned U.S. Treasury and Fed's "Stealth QE" liquidity injections could reignite Bitcoin's bull market. - Meta's $118B AI spending triggered 11% stock drop, erasing $29.2B from Zuckerberg's wealth amid margin concerns. - Fed's $50B SRF liquidity spike highlighted market fragility, with Bitcoin's technical indicators showing bearish momentum below $106,453. - H
The VIX, often referred to as the fear gauge, climbed to its highest level in nearly two weeks, jumping 2.4 points to reach 19.61 during the session. This increase signaled growing unease among investors, fueled by mixed corporate earnings reports and uncertainty surrounding central bank policies. The surge in volatility happened alongside a steep decline in
Bitcoin's latest decline, which saw it test support at $106,600 after falling 19%, has caught the attention of major institutional players.
Elsewhere, traditional financial markets showed signs of stress after Meta Platforms Inc. (Facebook's parent company) unveiled plans to invest $118 billion in AI infrastructure for 2025, including $72 billion in capital spending. This announcement led to an 11% plunge in Meta's share price on October 30, wiping $29.2 billion from CEO Mark Zuckerberg's fortune and dropping him to fifth place on the Bloomberg Billionaires Index, according to
The Federal Reserve's tightening policy, expected to wrap up by December 2025, has added to liquidity challenges.
Technical analysis for Bitcoin shows a bearish trend, with the RSI dropping below 50 and the MACD histogram narrowing, indicating fading bullish momentum. Should the price dip under $106,453, which is the 61.8% Fibonacci retracement level, it could fall further toward $102,000. Conversely, a bounce from this support might aim for the 50-day EMA at $112,502, presenting a possible recovery route, according to
Hayes recommended that investors "protect their capital and wait for the right moment," expecting a strong rally once Stealth QE starts to take effect. The U.S. government's dependence on bond markets, along with foreign central banks favoring gold over U.S. debt, has created a delicate situation. As the Fed addresses liquidity issues, its actions could indirectly make Bitcoin more attractive as a safeguard against currency depreciation—a point Hayes emphasized again.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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